Prada-Sarmiento, Juan David (2010): A note on concavity, homogeneity and non-increasing returns to scale.
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Abstract
This paper provides a simple proof of the result that if a production function is homogeneous, displays non-increasing returns to scale, is increasing and quasiconcave, then it is concave. If the function is strictly quasiconcave or one-to-one, homogeneous, displays decreasing returns to scale and if either it is increasing or if \mathbf{0} is in its domain, then it is strictly concave. Finally it is shown that we cannot dispense with these assumptions.
Item Type: | MPRA Paper |
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Original Title: | A note on concavity, homogeneity and non-increasing returns to scale |
English Title: | A Note on Concavity, Homogeneity and Non-Increasing Returns to Scale |
Language: | English |
Keywords: | Homogeneity; Concavity; Non-Increasing Returns to Scale; Production Function |
Subjects: | D - Microeconomics > D2 - Production and Organizations > D20 - General D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C60 - General |
Item ID: | 27499 |
Depositing User: | Juan David Prada Sarmiento |
Date Deposited: | 16 Dec 2010 18:00 |
Last Modified: | 27 Sep 2019 01:51 |
References: | Bone, J. (1989): “A Note on Concavity and Scalar Properties in Production,” Bulletin of Economic Research, 41(3), 213–217. Dalal, A. (2000): “Strict Concavity with Homogeneity and Decreasing Returns to Scale,” Atlantic Economic Journal, 28(3), 381–382. Friedman, J. W. (1973): “Concavity of Production Functions and Non-Increasing Returns to Scale,” Econometrica, 41(5), 981–984. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/27499 |
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